Why start your business in Malaysia?
Divided from its globalized island neighbour, Singapore, by a mere half-mile causeway, Malaysia has maintained a stable economic growth momentum for years. Spurred by high technology, a young and educated workforce, capital-intensive industries, Malaysia is a country that has a good business environment and investment climate. Different assets of the country have successfully attracted investors to do business in Malaysia. Here’s why.
The cost that incurred on business setup is relatively low due to the currency depreciation. As such, many multinational corporations have chosen to base in Malaysia especially the capital city-Kuala Lumpur. Furthermore, the Grade A office rental in Malaysia is lower if compared with Singapore, which less than US$2 per sq ft where Singapore cost at least US$7 per sq ft.
Good Business Environment
Malaysia’s well-developed infrastructure which include seaports with sophisticated facilities, well-maintained highways and railways, good transportation connectivity, established township as well as a series economic corridors (like Iskandar Development Region ), industrial parks ( like Malaysia-China Kuantan Industrial Park) and free trade zone aim to bring investments to sectors in which their respective regions have a competitive advantage provided by the government.
Also, the Multimedia Super Corridor (MSC) and MSC Malaysia Cybercity and Cybercentre has created a competitive environment to attract, nurture and retain ICT and ICT-enabled industries in the country.
Supports from Singaporean Government
The Singaporean government has given various grants and loans to help people to expand their business in Malaysia. To name a few, the Market Readiness Assistance (MRA) Grant, Internationalisation Finance Scheme (IFS), The Land Productivity Grant (LPG) are among the government incentives available.
- Market Readiness Assistance (MRA) Grant
Up to 70% of eligible third-party costs supported under the Market Readiness Assistance (MRA) grant, are open for business that engages in activities such as overseas market setup, identification of business partners as well as overseas market promotion.
- Internationalisation Finance Scheme (IFS):
Under the incentive of IFS, companies can access up to S$30 million in credit facilities to support their overseas expansion.
- The Land Productivity Grant (LPG)
LPG seeks to support companies which are interested to optimise land use through domestic or overseas relocation.
Now you asked, how to realise the overseas business setup?
3E Accounting understands the challenges and difficulties lie ahead and we are here ready to help. If you are planning an overseas business setup in Malaysia, contact us today at firstname.lastname@example.org and let’s work out the best solution for your business.